Proposal for a COUNCIL REGULATION (EEC) on special arrangements for imports of maize and sorghum into Spain for the year 1993
Date: 1993-11-05
Institutions: European Commission
Subjects: Spain, agricultural levy, free circulation, maize, market stabilisation, sorghum

COMMISSION OF THE EUROPEAN COMMUNITIES 

C0M(93) 540 final 

Brussels, 5 November  1993 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

on special arrangements  for imports of maize and  sorghum 
into Spain for the year  1993 

(presented  by  the Commission) 

J,gU2 

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-41 

- A-

EXPLANATORY MEMORANDUM 

According to the Agreement between the European Economic Community and the 

United States of America  for the conclusion of the negotiations under GATT 

i 

Article XXIV.6, as approved by Council Decision of 30 January  1987, the 

Community was committed to open an annual quota of 2 million tonnes of maize 

and 0.3 million tonnes of sorghum  for import into Spain for each of the 

years  1987 to 1992. These annual quotas were to be reduced by the quantities 

of certain cereal substitutes  imported  into Spain within the same year. 

An extension of the initial Agreement between the Community  and the United 

States of America  for  1993 was approved by Council Regulation  (EEC) 

No 991/93 of 23 April  1993. Special arrangements  for imports of maize and 

sorghum into Spain should be laid down for  1993, with the aim of ensuring 

fulfilment of the above-mentioned  commitment. As the Agreement was concluded 

under Article  113 of the Treaty, the Community has exclusive competence for 

these arrangements. 

Accordingly, the present draft regulation provides  for special  arrangements 

for imports with retroactive effect from  1 January 1993. 

Proposal for 

COUNCIL REGULATION  (EEC) No 

of 

1993 

on special arrangements  for imports of maize and  sorghum 
into Spain for the year  1993 

THE  COUNCIL  OF  THE  EUROPEAN  COJOIUNITIES, 

Having regard to the Treaty establishing  the European Economic community, 

and in particular Article  113 thereof, 

Having regard to the proposal from the Commission*, 

Whereas, under Council Regulation  (EEC) No 991/93 of 23 April  19932 

extending  the measures taken under the Agreement between the European 

Economic Community  and the United States of America  for the conclusion of 

the negotiations under GATT Article XXIV.6, the Community  undertook, in 

respect of the year  1993, to open a quota for imports  into Spain of two 

million tonnes of maize and 300 000 tonnes of sorghum, minus the quantities 

of certain grain substitutes  imported  into that country during the same 

year; whereas the quantities of maize and sorghum imported must be used or 

processed  in Spain; whereas the Community has sole competence  for the said 

Agreement; 

Whereas, to ensure that the Agreement between the European  Economic 

Community  and the United states of America  is implemented, the extended 

arrangements provide for direct purchase on the world market or  application 

of a levy reduction system; whereas, however, imports of maize and  sorghum 

into Spain effected on preferential terms may create difficulties  for the 

Community market; whereas, to overcome that difficulty, provision  should be 

made for the possibility of applying a countervailing  duty to processed 

products exported either to third countries or to the rest of the Community; 

1 OJ No C 

2 OJ No L  104, 29.4.1993, p. 1. 

whereas the combination of the advantages provided  for under the 

arrangements established by council Regulation  (EEC) No 715/9 0 of  5 March 

19903, as last amended by Commission Regulation  (EEC) No  444/924 

applicable to imports  into the Community of sorghum and maize originating in 

the African, Caribbean and Pacific  (ACP) States or in the overseas  countries 

and territories and under this Regulation  is liable to create  disturbances 

on the Spanish market  in cereals; whereas that difficulty  can be overcome by 

setting a special reduction of the levy on maize and  sorghum imported under 

this Regulation; 

Whereas provisions are required to cover the operations  arising  from this 

Regulation according to the mechanisms  laid down by Council Regulation  (EEC) 

No 729/70 of 21 April  1970 on the financing of the common  agricultural 

policy^, as last amended by Regulation  (EEC) No 2048/886, and by Council 

Regulation  (EEC) No  1883/78 of 2 August  1978 laying down general rules for 

the financing of interventions by the European Agricultural  Guidance 

Guarantee Fund, Guarantee Section', as last amended by Regulation  (EEC) 

No 787/898, 

HAS ADOPTED THIS REGULATION: 

Article 1 

For  1993 imports from third countries, for free circulation  in Spain, of a 

maximum quantity of two million tonnes of maize and 300 000 tonnes of 

sorghum shall be effected as provided in the following Articles. 

J OJ No L  H4,  JU.J.jrJO, p. o%. 

4 OJ No L 52, 27.2.1992, p. 7. 

5 OJ No L 94, 28.4.1970, p. 3. 

6 OJ No L  185, 15.7.1988, p. 1. 

7 OJ No L 216, 5.8.1978, p. 1. 

8 OJ No L 85, 30.3.1989, p. 1. 

•Article 2 

The quantities referred to in Article  1 shall be reduced  in proportion to 

any quantities of maize gluten, brewers' grains and citrus pulp  imported 

into Spain from third countries during the year  199 3. where it is 

ascertained that the quantities of such products  imported  into Spain 

under the cover of documents establishing  their Community  status develop 

i 
i 

abnormally, the necessary  action shall be taken in accordance with the 

procedure  laid down in Article 23 of Council Regulation  (EEC) No  1766/92 

of 30 June  19929. 

2. The quantities of maize and sorghum referred to in Article  1 shall be 

allocated to processing or use in Spain. 

Article 3 

1. Without prejudice to Article 4, in respect of imports of maize and 

sorghum into Spain, but within the quantitative  limits set in Article 2, 

a reduction shall be applied to the levy fixed in accordance with 

Article  10 of Regulation  (EEC) No 1766/92. 

2. The amount of the reduction shall be fixed, in accordance with the 

procedure  laid down in Article 23 of Regulation  (EEC) No  1766/92, at a 

level enabling disturbance of the Spanish market to be avoided. The 

reduction may also be fixed by a tendering procedure. 

The reduction may be differentiated for imports of maize and sorghum into 

Spain under Regulation  (EEC) No 715/90. 

3. The reduction  shall be applied to imports of maize and sorghum  into Spain 

effected on the basis of a licence valid only  in that Member State. 

9 OJ Ho L  181, 1.7.1992, p. 21 

- M-

Article 4 

1. With a view to effecting the imports referred to in Article  1, it may be 

decided,  under the procedure  laid down in Article  23 of Regulation  (EEC) 

No 1766/92, that the Spanish intervention  agency  shall purchase  directly 

on the world market quantities of maize and sorghum to be determined,  and 

shall place them under customs warehousing  procedure  as provided  for in 

Council Regulation  (EEC) No 2503/88 on customs warehouses10 and 

Regulation  (EEC) No 2561/9011  laying down provisions  for the 

implementation  thereof. 

2. Quantities purchased  pursuant to paragraph  1 shall be put up for sale on 

the Spanish domestic market,  in accordance with the procedure  laid down 

in Article  23 of Regulation  (EEC) No  1766/92, on terms enabling market 

disturbance to be avoided. 

3. When the goods are placed  in free circulation,  an agricultural  levy shall 

be charged, equal to the average of the levies applicable  in Spain and 

fixed  for the cereals concerned during the first  25 days of the month 

preceding the date of acceptance of the declaration of entry  into free 

circulation, minus the difference between the threshold price and the 

intervention price for the same month. 

Entry  into free circulation  shall be effected by the Spanish  intervention 

agency. 

when the purchasers of the goods make payment  to the intervention  agency, 

the selling price minus the levy shall correspond  to revenue  from sales 

within the meaning of Annex I to Regulation  (EEC) No  3492/9012. 

4. The purchasing  operation provided  for in paragraph  1 shall rank as 

intervention  for the purpose of stabilizing  the agricultural markets 

within the meaning of Article  1(2)(b) of Regulation  (EEC) No 729/70. 

10 OJ No L 225,  15.8.1988, p. 1. 

11 OJ No L 246, 10.9.1990, p. 1. 

12 OJ No L 337, 4.12.1990, p. 3. 

Payments by the intervention  agency  for buying as provided  for in 

paragraph  1 shall be borne by the Community as they arise and shall be 

treated  in the same way as the expenditure referred to in Article 2 of 

Regulation  (EEC) No 1883/78. The Spanish intervention  agency  shall record 

the value of the merchandise purchased at a price of  'zero' in the 

account referred to in Article  4 of Regulation  (EEC) No 1883/78. 

Article 5 

At a frequency to be determined, the commission  shall record  in accounts: 

the quantities of maize and sorghum  imported  into Spain from third 

countries, 

the quantities of maize gluten, brewers' grains and citrus pulp imported 

into Spain. 

For this purpose, the Spanish authorities shall supply the Commission 

regularly with all necessary  information. 

Article 6 

The imports referred to in Article 2 shall be effected not later than the 

end of February of the following year. In the event of technical 

difficulties duly noted by the Commission a period of importation  exceeding 

that time limit may be laid down in accordance with the procedure laid down 

in Article 23 of Regulation  (EEC) No 1766/92. 

- é-

Article 7 

Where the markets  for products derived  from maize or sorghum are disturbed, 

a countervailing  duty may be introduced  in accordance with the procedure 

laid down in Article 23 of Regulation  (EEC) No  1766/92 for exports of the 

relevant products from Spain or for their consignment to other Member 

States. 

/ 

Article 8 

The following  shall be adopted  in accordance with the procedure  laid down in 

Article 23 of Regulation  (EEC) No 1766/92: 

any measures needed to ensure that the cereals, the levy  for which has 

been reduced, are actually processed or used in Spain; such measures may 

in particular provide for the deposit of a security, 

the other detailed rules for the application  of this Regulation, and in 

particular those relating to the issue of import licences; such rules may 

stipulate that the licences may be issued only  in Spain, after Commission 

endorsement. 

Article 9 

This Regulation shall enter into force on the day following  its publication 

in the Official Journal of the European Communities. 

This Regulation shall be binding in its entirety  and directly  applicable in 

all Member States. 

Done at Brussels, 

For the Council, 

- ?' 

T. BUDGET  HEADING  : Expenditure  1003 
1000 

Revenu 

APPROPRIATIONS  :  214  (94  l.a.) 

1023.4 

2.  TITLE  : 

Proposal  for  a Council  Regulation  (EEC) on  special  arrangements  for  imports  of maize  and  sorghum 
into  Spain  for  the year  1993 

f 

3.  LEGAL  BASIS  : EEC  Treaty,  and  in particular  Article  43  thereof 

4. AIMS: 

To  fix  the quantities  and  lay down  the  implementing  rules  for  the  special  arrangements  for  imports  of 
maize  and  sorghum  into  Spain  following  the  extension  of  the Agreement  on  the matter  by  Council 
Regulation  (EEC) No 991/93. 

5.  FINANCIAL  IMPLICATIONS 

5.0  EXPENDITURE 

- CHARGED  TO  THE  EC  BUDGET 
(REFUNDS/INTERVENT IONS) 

- NATIONAL  AUTHORITIES 

- OTHER 

5.1  REVENUE 

- OWN  RESOURCES  OF  THE  EC 
(LEVIES/CUSTOMS  DUTIES) 

-  NATIONAL 

5.0.1  ESTIMATED  EXPENDITURE 
5.1.1  ESTIMATED  REVENUE 

PERIOD  OF  12 MONTHS 
(ECU  mi 11 ion) 

CURRENT  FINANCIAL  YEAR 
Ç1993) (ECU  million) 

FOLLOWING  FINANCIAL  YEAR 
(1994  (ECU  million) 

119.5 

p.m. 

119.5 

119.5 

p.m. 

119.5 

1995 

1996 

1997 

1998 

5.2  METHOD  OF  CALCULATION 

Revenue: 
1.5  million  t x ECU  66/t  x  1.207  (double  rate) = ECU  119.5  million 
Expenditure:  1.5  million  t x ECU  66/t  x  1.207  (double  rate) = ECU  119.5  million 

6.0  CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  ENTERED  IN  THE  RELEVANT  CHAPTER  OF  THE  CURRENT  BUDGET  ? 

6.1  CAN  THE  PROJECT  BE  FINANCED  BY  TRANSFER  BETWEEN  CHAPTERS  OF  THE  CURRENT  BUDGET  ? 

6.2  WILL  A SUPPLEMENTARY  BUDGET  BE  NECESSARY  ? 

6.3  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY  ? 

YES/XX 

YES/XX 

XXX/NO 

YES/XX 

COMMENTS  : 

The quantity  provided  for  in Article  1(1) of  2.3  million  t of  maize  and  sorghum  is  reduced  by 800  000 t, 
corresponding  to  the  estimated  quantities  of  maize  gluten,  brewers'  grains  and  citrus  pulp  imported 
into  Spain  in  1993  in accordance  with  Article  2 of  the  same  Regulation. 

The PDB  takes  account  of  these  imports. 

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ISSN 0254-1475 

COM(93) 540 final 

DOCUMENTS 

EN 

03  11 02 

Catalogue number : CB-CO-93-577-EN-C 

ISBN 92-77-60638-X 

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